Stocks again dropped on Wednesday after President Donald Trump threatened to strike Iran "very hard" because the country was taking "too long" to respond.
The S&P 500 fell 1.62%, standing below 7,300, while the tech-heavy Nasdaq Composite did so by almost 2%. The Dow Jones Industrial Average fell 1.87%.
Oil prices also rose as a result of Trump's threats. Brent crude, the international benchmark, rose by 2.02% and clocked in at $93.30 at 4:04 p.m., while West Texas Intermediate, the U.S. benchmark, did so by 2.39% and stood at $90.31 at the same time.
Trump said on Wednesday that the U.S. hit Iran "very hard" on Tuesday and "we're going to hit them hard again today."
At the same time, Trump urged Iran to "sign the deal," noting that his administration wants one that is "meaningful and works." "We'll see what happens with the deal," he said.
Trump made repeated threats over the past days. Earlier on Wednesday he reportedly said he may order strikes against Iranian infrastructure because Tehran is taking too long to reach a deal to end the war.
Fox News reporter Trey Yingst said he spoke to Trump, who told him he could "keep going" after ordering strikes against Tehran over the downing of a U.S. helicopter close to the Strait of Hormuz.
The journalist went on to say Trump told him Tehran "had a chance to sign a deal and survive" and is "getting close to ordering new strikes against Iranian power plants and bridges" because he believes the "Iranians are tapping the United States along."
The reported remarks follow a social media post in which Trump anticipated further escalation because Iran "has taken too long to negotiate a deal that would have been great for them."
Trump made the claim in a social media post in which he also said Tehran's military is a "complete and total mess" and will now have to "pay the price."
"Much of it, like their Navy and Air Force, doesn't even exist anymore - They have been completely defeated. Iran is all talk and no action. The Bully of the Middle East is DEAD!!!" he added.
Axios reported on Wednesday that Trump also grew frustrated with Iran over its dilation to give answers to U.S. proposals for a deal. The outlet noted that hours before the strike the White House had been trying to get clear answers from the Iranians to the latest proposal but were unsuccessful. Strikes took place soon after.
